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TREASURIES-Traders send down yields on lower stocks, global virus concerns

    * Investors worry public health gains on virus stalling
-analyst
    * Powell says U.S. economy to see little higher inflation in
2021
    * U.S. 2/10 yield curve slightly flatter on the day
    * U.S. overnight repo rate at 0.1% as GSE cash weighs

 (Adds bullets, updates prices, adds overnight repo rate)
    By Ross Kerber
    April 20 (Reuters) - Most U.S. Treasury yields fell on
Tuesday as investors moved out of stocks and eyed challenges
many countries still face from the COVID-19 pandemic.
    The benchmark 10-year yield was down 3.7 basis
points at 1.562% in early afternoon trading after spending much
of the morning near 1.6%.
    Yields fell as the S&P 500 and the Dow traded lower for a
second straight day, with investors pinning their hopes on
results from Netflix Inc and other major tech-related
companies this week to help sustain an upbeat start to the
earnings season.
    Tufts University economist Brian Bethune said the lower
yields stood in contrast with their level close to 1.8% on March
30, reflecting worries that public health gains against the
coronavirus have stalled in Brazil, Canada and other
countries.
    "There's a repricing of what the international environment
is going to look like," even though the U.S. economic recovery
looks strong, Bethune said.
    The benchmark yield remained above its multi-week low of
1.528% reached April 15. Investors will watch the results of a
$24 billion auction of 20-year bonds by the U.S. Treasury set
for Wednesday.
    Federal Reserve Chair Jerome Powell said the U.S. economy
will temporarily see "a little higher" inflation this year as
activity strengthens and supply constraints push up prices in
some sectors, but the Fed is committed to keeping any overshoot
within limits, according to an April 8 letter seen by Reuters.

    A closely watched part of the U.S. Treasury yield curve
measuring the gap between yields on two- and 10-year Treasury
notes, seen as an indicator of economic
expectations, was at 140.80 basis points, about 1 basis point
lower than Monday's close.
    The two-year U.S. Treasury yield was down less
than a basis point at 0.153%.
    In the overnight repurchase market, the repo rate fell to
0.1% on Tuesday from 0.3% the previous session,
weighed down by the influx of cash from government state
enterprises Fannie Mae, Ginnie Mae and Freddie Mac.
    Each month, around the 18th, Fannie, Freddie and Ginnie
invest cash in the repo market during the period when they
receive mortgage payments from homeowners, until they make their
principal and interest payments on the 24th to the
mortgage-backed security holder.
    
      April 20 Tuesday 3:17PM New York / 1917 GMT
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.025        0.0253    -0.003
 Six-month bills               0.0425       0.0431    0.000
 Two-year note                 99-241/256   0.1552    -0.006
 Three-year note               100-40/256   0.3223    -0.019
 Five-year note                99-196/256   0.7984    -0.031
 Seven-year note               100-24/256   1.2358    -0.036
 10-year note                  96-4/256     1.5642    -0.035
 20-year bond                  95-140/256   2.1521    -0.027
 30-year bond                  91-164/256   2.2619    -0.031
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap        11.50         0.25    
 spread                                               
 U.S. 3-year dollar swap        12.25         0.50    
 spread                                               
 U.S. 5-year dollar swap         8.50         0.75    
 spread                                               
 U.S. 10-year dollar swap       -1.25         1.00    
 spread                                               
 U.S. 30-year dollar swap      -27.75         1.50    
 spread (Reporting by Ross Kerber in Boston; Additional reporting by
Gertrude Chavez-Dreyfuss in New York; Editing by Susan Fenton,
Steve Orlofsky and Richard Chang)
  
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